Kim and Kim SpringerPlus (2016) 5:1537 DOI 10.1186/s40064-016-3220-3

RESEARCH Open Access The influence of corporate social responsibility, ability, reputation, and on hotel customer loyalty in the U.S.: a gender‑based approach Sung‑Bum Kim1 and Dae‑Young Kim2*

Abstract This research explored a conceptual framework incorporating interrelationships among corporate social responsibility (CSR), corporate ability (CA), corporate reputation (CR), and CSR-related transparency on customer loyalty within the hotel context. In this study, we also analyzed consumers’ propensity to support CSR initiatives through the socio- demographic indicator of gender. We used independent sample t test and multiple regression analysis to test hypoth‑ eses based on 487 responses from American participants. Four antecedents (i.e., CSR, CA, CR, and transparency) exhibited favorable effects on customer loyalty. Among these four factors, the positively perceived CSR initiatives had a greater impact on customer loyalty. In addition, according to our findings, female participants were more likely to have a positive perception of the four antecedents than males. Keywords: Corporate social responsibility, Corporate ability, Corporate reputation, Customer loyalty, CSR-related transparency, Gender difference

Background particularly within the hospitality and tourism industry The hotel industry is one of the world’s fastest-growing (Yoo et al. 2011). business spheres (de Grosbois 2012), and it plays an The role of corporate social responsibility (CSR) has indispensable role in the hospitality industry. According been an important topic studied by both scholars and to a HospitalityNet report (2015), revenue from the hotel practitioners in recent decades. CSR is related to a com- industry is expected to reach $550 billion U.S. dollars in pany’s commitment to its societal obligations. Recently, 2016. The industry revenue was worth only $457 billion researchers have begun to include CSR in loyalty behav- U.S. dollars in 2011; however, we experienced an increase ior models. A socially responsible image can differentiate in revenue of approximately $100 billion U.S. dollars over a brand and enhance customer loyalty. Corporate social the past 5 years. Within the service industry, there is responsibility helps to enhance sustainability of the hos- strong interest in determining the features that increase pitality industry and retain customers (Gao and Mattila guest loyalty to particular hotels; it is commonly believed 2014). Relevant studies have proposed that CSR directly that loyal customers lead to higher profits. In today’s generates customer loyalty (Martínez and del Bosque highly competitive market, researchers have investigated 2013). However, due to the fact that perceived CSR is a the factors that lead to customer loyalty (Pan et al. 2012), complex construct, some scholars are not convinced that customers will take it into account when they decide which hotel to choose. Corporate Ability (CA) is also an important differen- *Correspondence: [email protected] tiator in this competitive business environment. CA is 2 Hospitality Management, University of Missouri, 115 Eckles Hall, Columbia, MO 65211, USA defined as “the company’s expertise in producing and Full list of author information is available at the end of the article delivering products and services” (Brown and Dacin 1997).

© 2016 The Author(s). This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. Kim and Kim SpringerPlus (2016) 5:1537 Page 2 of 13

Traditionally, quality in the hotel industry has been viewed minimizing the negative consequences (Petkus and as a primary feature for attaining a competitive lead and Woodruff 1992). The examples of manufacturers and market distinction. The relationship between CA and retailers pursuing CSR activities are numerous and customer loyalty has often been investigated in various include businesses as diverse as Target, Apple, Converse, service contexts (Zeithaml et al. 1996). Corporate Repu- Motorola, Emporio Armani, and The Gap. In the restau- tation (CR), one of the main factors related to any indus- rant domain, McDonald’s sponsors its Ronald McDon- try’s sustainability, has been linked to perceived CSR and ald House Charities while Starbucks, Panera Bread, and corporate ability (Brown and Dacin 1997). Su et al. (2015) Chipotle campaign for animal welfare. In the lodging suggested that customer-perceived CSR events and CR are industry, according to Kucukusta et al. (2013), hotels two intangible resources that might greatly benefit hotels. such as Wyndham Hotels and Resorts and Hyatt have Recently, researches have shown the effectiveness of trans- made CSR an essential element of their strategic market- parency in safeguarding the efficiency of companies’ CSR ing plan. Customer skepticism about CSR involvement enterprises (Kang and Hustvedt 2014a, b). Transparency is results from a lack of consumer awareness of such tan- defined as “visibility of and accessibility to data concerning gible community action outcomes more than from con- industry practices” (Merriam-Webster 2010). sumers’ doubt of company motives for pursuing such Building a loyal customer base is critical for a com- activities (Singh et al. 2009). Responding to consumers’ pany’s growth (Kotler and Armstrong 2008). It is the demands for more CSR activities and greater corporate foundation for sustainable competitive advantages (Dick transparency has been important in recent years (Saeidi and Basu 1994). The hospitality literature is full of inves- et al. 2015). In line with agency theory, Piechocki (2004) tigations related to customer loyalty and its antecedents argued that one essential feature of socially responsible within the CSR literature (e.g., Martínez and del Bosque entrepreneurship is transparent discourse with investors 2013). There are other factors in the literature that play about CSR rules and events. Dubbink et al. (2008) have an important role in attaining customer loyalty (Khan studied the role of transparency in safeguarding the effec- et al. 2015). Despite growing interest in CSR within the tiveness of many firms’ socially responsibility initiatives. hotel industry, empirical support in this area remains limited. Current findings have shown that CSR and CA, Corporate social responsibility and corporate ability CR and CSR-related transparency are fundamental con- Brown and Dacin (1997) refer to all the information cepts for explaining this important aspect. However, about a company to which a consumer has access as a there have been no studies to investigate the integrated combination of both CSR and CA. Consumers make use model that simultaneously measures the four variables’ of trade-offs between CSR product features and corpo- (CSR, CA, CR, and CSR-related transparency) impact on rate ability (Pomering and Dolnicar 2009). To combat customer loyalty in the hotel industry. consumer apprehension about CSR involvement, compa- The relationship between CSR initiatives and consumer nies can reinforce the effects of CSR if their products and responses is moderated by factors that are specific to indi- services are believed to be of higher quality when these viduals. Researchers have emphasized the importance of initiatives are adopted (He and Li 2011). To achieve this, gender in the market categorization process because it is hotel management must increase quality and preserve a a primary feature of customer decision-making (Ibrahim maintainable improvement (Gray et al. 2000). and Angelidis 1994). Yet, few researchers have examined the role of gender differences on the impact of CSR and Corporate reputation related antecedents on consumer responses. Based on To understand CR from a customer’s point of view, we the disparities outlined above, the goal of this study was drew on Walsh and Beatty’s (2007) definition of cus- to explore the four antecedents (CSR, corporate ability, tomer-based CR, or “the customer’s overall evaluation of corporate responsibility and CSR-related transparency) a company based on his or her reactions to the company’s of customer loyalty and determine how they influence goods, services, communication activities, interactions customer loyalty simultaneously within the hotel context. with the company and/or its representatives or con- In this study, we hope to explore how hotel customers’ stituencies (such as employees, management, or other perceptions of four factors differ and how this relates to customers) and/or known corporate activities” (p. 129). customer loyalty by gender. Corporate reputations are perceived as the attributes that differentiate one firm from another (Barnett et al. 2006) Literature review or as reactions to the company’s services, communica- Examples of CSR activities across industries tion activities, and interactions with the company and/ The purpose of CSR initiatives is to maximize the or its representatives (Walsh and Beatty 2007). When industry’s long-term favorable effect on society while confronted with a lack of personal experience regarding Kim and Kim SpringerPlus (2016) 5:1537 Page 3 of 13

a product or the company’s civic action plan, individuals Hypothesis 2 Corporate ability has a significantly rely on the CR to judge its products as well as its inten- positive influence on overall customer loyalty toward a tions (Schnietz and Epstein 2005). hotel.

Transparency The impact of corporate reputation on customer loyalty This phenomenon may reduce individuals’ information Corporate reputation has long been recognized as a asymmetry, perceived risk, and skepticism by provid- significant source of competitive advantage (Ali et al. ing documents regarding where and under what condi- 2015). In this research, we defined and employ CR as an tions products are manufactured (Hustvedt and Bernard independent variable. Consequences of CR have been 2010). In some countries in the European Union corpo- underexplored empirically (Walsh et al. 2009). Sim- rate activities and CSR-related information are regularly ply put, companies with good reputations are likely to issued to the public (van Wensen et al. 2011). However, attain more consumers. In addition, a favorable CR has elsewhere, including North America, reporting on CSR been shown to positively affect behavioral outcomes by companies is still voluntary with no repercussions of consumers (Gounaris and Stathakopoulos 2004). A if the companies refuse. Given the vulnerability of the company’s reputation can increase customer loyalty economy, it is fundamental that establishments pursue (Du et al. 2007). Therefore, we propose the following customer loyalty and that accountability and transpar- hypothesis: ency through public reporting are recognized (Belal et al. 2013). Hypothesis 3 A favorable corporate reputation has a significantly positive influence on overall customer loy- Customer loyalty alty toward a hotel. By generating and preserving customer faithfulness, a company develops long-term, mutually beneficial asso- The impact of CSR‑related transparency on customer ciations with its clients. A loyal customer base results in loyalty a maintainable competitive benefit (Mandhachitara and Scholars have found that corporate transparency has sig- Poolthong 2011). By attracting loyal customers, executives nificantly positive influences on consumers’ responses to can decrease advertising costs and diminish the impact a company (Bhaduri and Ha-Brookshire 2011). Customer of price sensitivity. Additionally, a high level of customer loyalty is likely influenced by consumer’s perceptions of a loyalty results in recommendations through positive company’s efforts to be transparent (Kang and Hustvedt word-of-mouth. Relevant studies have emphasized the 2014a, b). Based on the above discussions, we propose significance of understanding the elements that contrib- the following hypothesis: ute to customer loyalty. Due to the fact that more atten- tion has been paid to the antecedents of customer loyalty, Hypothesis 4 Corporate social responsibility-related previous researchers have failed to provide consistent transparency has a significantly positive influence on explanations regarding how they affect customer loyalty overall customer loyalty toward a hotel. (Kumar et al. 2013). Therefore, the hospitality industry must focus on understanding customer needs in order to boost allegiance in an increasingly competitive market. Gender differences Gender differences have been examined widely within The impact of CSR and CA on customer loyalty the consumer behavior literature. Women and men play Scholars have proposed that CSR directly generates more different roles and exhibit varying behaviors in soci- customer loyalty, without requiring the intervention of ety because they are socialized in different ways. Patino mediating variables (e.g., Martínez and del Bosque 2013). et al. (2014) endorsed the importance of gender as a key They claimed that corporate ability and CSR act as evalu- demographic factor for understanding consumers’ per- ative criteria for determining consumer purchase inten- ceptions of CSR practices. Bossuyt and Van Kenhove tions. An assessment of a customer’s positive perception (in press) found that women are more influenced by the of CA leads to favorable customer behavioral outcomes ethical standing of companies than men. Rocha et al. (Zeithaml et al. 1996). Based on these findings, we posit (2005) argued that male and female perceptions of cor- the following hypotheses: porate ability differ significantly. Ma et al. (2014) found a marked moderating effect of gender in the relationship Hypothesis 1 Perceived CSR has a significantly positive between customers’ perceived corporate ability and cus- influence on overall customer loyalty toward a hotel. tomer loyalty. Kim and Kim SpringerPlus (2016) 5:1537 Page 4 of 13

Researchers have recognized a positive association between gender and CR (Bear et al. 2010) in that males CSR H1 and females tend to utilize significantly different infor- mation processing strategies, which in turn influences Corporate H2 judgment formation (e.g., Holbrook 1986). Hyllegard ability Customer loyalty et al. (2012) argued that females are more likely than H3 males to value comprehensive CSR data. Compared Corporate to men, women may be more likely to request publicly reputation issued material related to CSR claims, which aid in their H4 H5 H6 H7 H8 decision-making. Males are less influenced by informa- Transparency tion transparency (Bhaduri and Ha-Brookshire 2015). Gender Meyers-Levy (1988) claimed that females allocate more importance than males to uncertainty, time and money Fig. 1 Research model constraints, and consequences of decisions and task fac- tors. In light of these findings, we hypothesize that gen- der makes a difference in perceptions of CSR, CA, CR, that were originally created by Weiss et al. (1999). We and transparency within the hotel context: measured five transparency items via a scale designed to assess consumer perceptions of transparency, as out- Hypotheses 5 Compared to male respondents, female lined in previous studies (Hustvedt and Kang 2013). To respondents perceive that CSR has a more positive influ- measure customer loyalty, we employed a four-item scale ence on overall customer loyalty toward a hotel. from previous studies (Zeithaml et al. 1996). All items appear in the “Appendix”. Our questionnaire concluded Hypotheses 6 Compared to male respondents, female with a series of demographic questions used to identify respondents perceive that CA has a more positive influ- the respondent’s gender, ethnic background, age, level of ence on overall customer loyalty toward a hotel. education, and annual income.

Hypotheses 7 Compared to male respondents, female Data collection respondents perceive that CR has a more positive influ- We utilized a self-administered, online survey directed ence on overall customer loyalty toward a hotel. at customers in the United States called the Amazon Mechanical Turk because respondents are more demo- Hypotheses 8 Compared to male respondents, female graphically varied than other approaches, rendering this respondents perceive that CSR-related transparency has method a dependable means of enlisting participants a more positive influence on overall customer loyalty for empirical inquiries (Rouse 2015). We established an toward a hotel. incentive-based design in which the reward and incentive to contribute were directly linked to the tasks that the Based on these theoretical relationships among vari- participants completed (Ding et al. 2005). As an incen- ables, we developed eight hypotheses. Our final concep- tive to participate in the survey, our respondents received tual model is shown in Fig. 1. This research demonstrates a $.50 credit for their Mechanical Turk account. People the relationships among the study constructs. who had stayed at a hotel within the last 6 months were encouraged to fill out the survey. Respondents were then Methods given a link to our study’s webpage. We chose to utilize Measurement and survey questionnaire development an online survey for cost savings, a rapid response time, The questionnaire we selected for this research was greater control over the sample, and more effective data designed based on established scales for all relevant tabulation (Ilieva et al. 2002). The first part of the ques- constructs. We instructed all respondents to rate their tionnaire included a description of hypothetical hotels perceptions of every item using a Likert-type scale to and scenarios. We collected a total of 490 responses from measure responses on a continuum of one for “strongly participants. disagree” to five for “strongly agree.” Perceptions of CSR were measured via five items adapted from previous Data screening research (Brown and Dacin 1997). We adapted the three Before conducting the data analysis, we examined the items for measuring corporate ability from Fombrun dataset for missing information. Because outliers may et al. (2000) and Brown and Dacin (1997). Customer per- bias the mean and influence the normal distribution ception of overall CR was measured using three items (Field and Hole 2003), participants who were unable to Kim and Kim SpringerPlus (2016) 5:1537 Page 5 of 13

fill out the questionnaire completely were removed from between each pair of constructs, as shown in Tables 2 the dataset prior to the data analysis. To locate outliers, and 3. All investigated constructs met the discriminant we used descriptive statistics, box plots (Byrne 2001). validity requirements (Fornell and Larcker 1981). Our study yielded a total of 487 complete and usable responses. Hypothesis testing Overall CSR (βCSR–customer loyalty = .271, t = 4.805, p < .001), Data analysis CA (βCA–customer loyalty = .237, t = 4.484, p < .001), CR (βCR– First, we checked the reliability and validity of the meas- customer loyalty = .271, t = 4.805, p < .05), and CSR related urement model. Then, we performed Confirmatory Fac- transparency (βtransparency–customer loyalty = .170, t = 3.416, tor Analysis (CFA), using AMOS. In order to study cause p < .001). Therefore, hypotheses 1, 2, 3, and 4 were sup- and effect, we employed a multiple regression model to ported, as expected. The findings indicated that CSR, evaluate the impact of the four elements on customer CA, CR, and CSR-related transparency (the independent loyalty. Multiple regression analysis is the concurrent variables) were generally associated with customer loyalty grouping of multiple factors to measure how and to what (the dependent variable). The results of the comparisons degree they affect a certain result (the causal relation- among the beta coefficients and the t-values revealed that ships). We used an independent sample t test to calculate CSR had a greater impact on customer loyalty toward a the mean differences in the four factors (CSR, CA, CR, hotel. The regression results that we used to evaluate the and CSR-related transparency) between genders. hypotheses are presented in Table 4 and Fig. 2. Tolerance values ranged from .369 to .485. The variance inflation Results factor (VIF) was calculated, and the values for each inde- Sample profile pendent variable in all regression models are smaller than The demographic profiles of the respondents are pre- 3.0, which indicated little multicollinearity (O’Brien 2007). sented in Table 1. The cohort was 49.1 % male and Thus, the estimations were free of significant multicollin- 50.9 % female. Roughly half of the respondents (48.3 %) earity bias. were between the ages of 25 and 34; the next largest age Then, we utilized an independent sample t test to link group consisted of individuals between the ages of 35 and the mean scores of the four independent variables when 44 years (25.1 %). The respondents were primarily White/ comparing the responses of male and female respondents Caucasian (79.7 %), followed by Asian (7.0 %) and Afri- to further classify initial gender differences, as shown in can American (6.4 %). Nearly 16 % of the respondents Table 5 and Fig. 3. Levene’s test for homogeneity of vari- earned $30,000–39,999/year. Approximately 42.9 % of the ances was carried out. The results were of no significance respondents had some college education or an associates (p > .05) for all the analyzed variables, so the assumption (2-year) degree. of variance equality was not rejected. The significant dif- ferences between the means of the two groups on per- Confirmatory factor analysis of measurement scales ceived CSR, CA, CR, and transparency (t(485) = −3.114; As shown in Table 2, findings from the CFA indicated that t(485) 4.175; t(485) 4.074; t(485) 2.921, 2 = − = − = − this model closely fit the data (χ = 1376.434, df = 303, p < .01). Overall, mean scores and standard deviations p < .001), CFI = .90, IFI = .90, and RMSEA = .08). Fac- for all variables were higher among female respond- tor loadings for the indicators for each construct were ents (CSR: Mfemale = 3.995 vs. Mmale = 3.834; CA: all significant (p < .01) and sufficiently high. To evaluate Mfemale = 4.153 vs. Mmale = 3.939; CR: Mfemale = 4.333 vs. the internal consistency of the multi-item measures for Mmale = 4.131; CSR related transparency: Mfemale = 3.973 each construct, we conducted a composite-reliability test vs. Mmale = 3.808). Thus, hypotheses 5, 6, 7, and 8 were for which all values ranged from .726 to .922, and were supported. greater than the recommended threshold of .60 (Bagozzi and Yi 1988). Results suggested acceptable latent con- Conclusion and discussion struct reliability. In terms of reliability, Cronbach’s alpha Attracting profitable customers and retaining them is for all components was higher than .7 (Hair et al. 1998; always a key element of a successful business. Both those CSR = .825, CA = .814, CR = .893, transparency = .853, in the industry and academia are consistently seeking customer loyalty = .780), indicating internal consistency ways to increase customer loyalty. Although this is a within the measurement items. An acceptable level of popular topic, there has been no agreement on the fac- convergent validity was evident in that all Average Vari- tors that generate superior loyalty on the part of consum- ance Extracted (AVEs) were greater than .50 (Hair et al. ers (Mason et al. 2006) within the hotel context. Relevant 1998). We accessed the discriminant validity by compar- studies have examined the antecedents and outcomes ing the AVE values with the square of the correlations of customer loyalty (e.g., Xie and Chen 2014); however, Kim and Kim SpringerPlus (2016) 5:1537 Page 6 of 13

Table 1 Profile of survey respondents (N 487) = Demographic characteristics Descriptive Frequency Percentage

Gender Female 239 49.1 Male 248 50.9 Agea 18–24 38 7.8 25–34 235 48.3 35–44 122 25.1 45–54 52 10.7 55–64 28 5.7 Over 65 12 2.5 Education level High school or less 61 12.5 Some college or associate 209 42.9 (2 year) degree Baccalaureate (4 year) degree 178 36.6 Graduate studies/post-graduate studies 39 8.0 Race White/Caucasian 388 79.7 Asian 34 7.0 African American 31 6.4 Hispanic/Latino American 16 3.3 American Indian/Native American 4 .8 Pacific Islander 1 .2 Other 13 2.7 Annual household incomeb (2015) $0–19,999 81 16.6 $20,000–29,999 62 12.7 $30,000–39,999 79 16.2 $40,000–49,999 48 9.9 $50,000–59,999 65 13.3 $60,000–69,999 50 10.3 $70,000–79,999 32 6.6 $80,000–89,999 21 4.3 $90,000–99,999 13 2.7 Over $100,000 36 7.4 a Years old b U.S. Dollars there have been no studies examining the four elements’ Hypothesis 2 is consistent with previous studies that have link to customer loyalty within the hotel context. There established the importance of quality management in the have only been a few studies that have investigated gen- hospitality industry with the goal of increasing competi- der difference among these four factors within the hotel tiveness (Wang et al. 2012). In addition to a company’s context. Thus, the goals of this study were to explore the participation in CSR activities, service must be of high four antecedents of customer loyalty and determine how quality to elicit customer faithfulness (Mandhachitara they influence customer loyalty simultaneously, and to and Poolthong 2011). We also confirmed that the con- investigate the variation of the perceptions of these fac- tribution of CSR to a company’s attractiveness is much tors between male and female customers within the hotel stronger than that of CA (Marin and Ruíz 2007). setting. In terms of hypothesis 3, although previous research- Our findings confirmed hypotheses 1 and 2. Our ers have found that perceived CR is positively related to results highlighted the value of CSR initiatives in terms trust (e.g., Ganesan 1994) and the influence of CR on cus- of customer allegiance and further support the find- tomer loyalty is fully mediated by customer satisfaction ings of earlier studies (e.g., Galbreath 2010). It must be (Loureiro and Kastenholz 2011), their research confirmed noted that He and Li (2011) had previously found a the direct impact of CR on customer loyalty. With regard positive connection between CSR and customer loyalty. to hypothesis 4, our research showed that CSR-related Kim and Kim SpringerPlus (2016) 5:1537 Page 7 of 13

Table 2 Confirmatory factor analysis: item measurement properties Constructs Items Standardized factor loadings Cronbach’s α CR AVE

CSR CSR-1 .576 .825 .898 .643 CSR-2 .663 CSR-3 .831 CSR-4 .815 CSR-5 .667 CA CA-1 .813 .814 .810 .756 CA-2 .808 CA-3 .715 Corporate reputation CR-1 .849 .893 .897 .882 CR-2 .878 CR-3 .846 Transparency TR_1 .709 .853 .726 .661 TR_2 .729 TR_3 .753 TR_4 .729 TR_5 .780 Customer loyalty CL-1 .789 .865 .922 .798 CL-2 .501 CL-3 .830 CL-4 .862

Goodness-of-fit: χ2 1376.434, df 303, p < .001, RMSEA .08, CFI .900, NFI .901, TLI .902 ======CSR corporate social responsibility, CA corporate ability

Table 3 Construct intercorrelations Table 4 Multiple regression analysis results 1 2 3 4 5 Regression model Customer loyalty b a 1. CSR 1 Beta t values VIF 2. CA .782 1 CSR .271*** 4.805 2.711 3. CR .696 .814 1 CA .237*** 4.484 2.379 4. TR .800 .619 .587 1 CR .090* 1.824 2.060 5. Customer loyalty .737 .738 .640 .674 .726 Transparency .170*** 3.416 2.122 2 CSR corporate social responsibility, CA corporate ability, CR corporate reputation, R (Adjusted): TR transparency Customer loyalty .430 All coefficients were significant at p < .05 = All beta values are standardized. Italicized numbers indicate the values that have the strongest impact on the dimension CSR corporate social responsibility; CA corporate ability, CR corporate reputation transparency had a positive influence on overall cus- * p < .05; ** p < .01; *** p < .001 tomer loyalty toward the hotel, which is consistent with a Variance inflation factor prior findings (Kang and Hustvedt2014a ). Organiza- b One-tailed test tions often keep a low profile with regard to their social responsibility activities, and they are reluctant to adver- tise their involvement for fear of customer dissatisfac- et al. 1995). It also indicates that providing transparent tion due to unfulfilled expectations (Schlegelmilch and CSR information is an effective way to attract customer Pollach 2005). With respect to transparency, Kelleher loyalty toward a hotel. (2009) showed that companies need to consistently pre- In terms of gender differences (hypotheses 5, 6, 7, and sent thorough data to the public about their associations 8), whereas some researchers have found small or irrel- with social agencies. Therefore, it is vital for companies evant changes (e.g., Trevino 1992) or even no significant to reveal information openly and honestly in order to association (Sikula and Costa 1994) in terms of perceived lessen charges of manipulation and “greenwashing” (Gray and CSR and customer loyalty. In fact a study by Bekkers Kim and Kim SpringerPlus (2016) 5:1537 Page 8 of 13

have a stronger sense and awareness in terms of the over-

CSR .271 (4.805)*** all service quality, while male’s abstract mind would be less conscious of the service quality and be more con- centrated on the logical and consistent attributes of the Corporate .237 (4.484)*** ability Customer industry. loyalty .090 (1.824)* Male and female participants respond differently in terms of the links between CR and customer loyalty. Corporate reputation Based on our findings, we can infer that females are seen .170(3.416)** as comprehensive information processors, while male

Transparency tends to be more selective and leave out subtle cues (Dar- ley and Smith 1995). This indicates that women might be Fig. 2 Multiple regression analysis results. *p < .05; **p < .01; more likely to demand transparency with regard to CSR ***p < .001 (one-tailed) claims to aid in their decision-making process. This is consistent with previous findings that female customers place a higher value on the social and relational aspects of service (e.g., Iacobucci and Ostrom 1993). (2010) indicated no gender gap within the CSR context. However, both male and female consumers reported that Theoretical implications perceived CSR had a significant effect on customer loy- Our findings have several notable theoretical and prac- alty. Our study confirmed along with some prior studies tical implications. From a theoretical point of view, this (O’Fallon and Butterfield 2005) that women are more research contributes to the hospitality industry’s goal of likely than men to evaluate a company based on its CSR increasing CSR activities. Although CSR is a hot topic involvement. in most areas, such investigations in the hospitality and Some scholars claimed that individuals’ perceptions of tourism sector lag behind those of other fields. Although corporate ability do not vary with gender differences (Lee a few investigators have examined the CSR practices of and Chen 2009). Mattila’s (2000) investigations of gender the hotel industry, their studies have been largely focused differences and consumer evaluations of service encoun- on environmental effects and performance (Benavides- ters yielded no significant differences between genders. Velasco et al. 2014). Liu et al. (2014) have proposed that Nonetheless, we confirmed that variations in the demo- our current understanding of the influence of CSR on graphic profiles of customers can lead to variances in the customer response is still inadequate. While existing perception of CA (Bekko 2000). According to Laroche research in the hospitality industry has broadly explored et al. (2000), women also tend to rely more heavily on loyalty issues, there have been few studies that focus on tangible and intangible cues in the service environment specifically on the concept of CSR’s relation to hotel cus- to make their evaluations. In addition, according to Ma tomer loyalty. et al., perceived corporate ability has a greater impact on Previous studies have revealed that the direct links females’ overall evaluations with a restaurant compared of our independent variables (CSR, CA, CR, transpar- to males (2014). Lee et al. (2016) claimed that females ency) to customer loyalty have been inconclusive (e.g.,

Table 5 Independent sample t test results between genders Gender differences Mean SD t value P value Levene’s test (two-tailed) F value Significance

CSR Male 3.834 .560 3114 .002** .389 .533 − Female 3.995 .575 CA Male 3.939 .573 4.175 .000*** .109 .742 − Female 4.153 .556 CR Male 4.131 .568 4.074 .000*** 1.046 .307 − Female 4.333 .522 CSR related transparency Male 3.808 .599 2.921 .004** .265 .607 − Female 3.973 .642

CSR corporate social responsibility, CA corporate ability, CR corporate reputation ** p < .01; *** p < .001 (two-tailed) Kim and Kim SpringerPlus (2016) 5:1537 Page 9 of 13

difference between how men and women perceive these 4.333 four independent variables (CSR, CA, CR, transparency). There is ongoing research on the presumed differences 4.153 4.131 between men and women (De Wit and Bekkers, in press) with regard to purchase behaviors. Our study will con- 3.995 3.973 3.939 tribute to this type of research by focusing specifically on the hotel context. 3.834 3.808 Practical implications From a practical perspective, while CSR efforts may sim- ply be window dressing and propaganda, they do have a significant impact on customers—much like a market- ing or advertising campaign. There has been discussion Fig. 3 Gender difference in CSR, CA, CR, and transparency (male about whether hospitality companies should become group and female group). Note: CSR: corporate social responsibility; involved in CSR activities (Saiia et al. 2003). According to CA: corporate ability; CR: corporate reputation Saiia et al. (2003), it has been suggested that hospitality managers should implement greater CSR involvement. Although this is now a worldwide trend in the hotel industry, hoteliers are largely unacquainted with this idea Viada-Stenger et al. 2010). The studies directly examin- (Luck and Bowcott 2009). In terms of corporate ability, ing the relationships between CSR, CA, CR, transparency well-trained staff with good manners and a high level of and customer loyalty are still lacking within the context of expertise play a significant role in enhancing customer the hotel industry. Thus, in this study, we have addressed loyalty toward a service brand/company. research gaps in essential hospitality marketing areas. Companies must pay attention to the reputation, and Recently, researchers (Su et al. 2016) have pointed out they are well advised to carefully control the elements that the impact of CR has been underexplored empiri- that contribute to this reputation (e.g., advertising) cally. For example, Su et al. (2015) believed that only cur- (Loureiro and Kastenholz 2011). By creating and devel- sory attention has been paid to the standing of CR and oping a favorable CR, companies can benefit from higher CSR within the context of the hotel industry. Examin- levels of differentiation, appeal to investors, and obtain ing the association between CSR and CR is still a fairly higher levels of customer loyalty. Given that our findings new concept, so few scholars have studied it (Golob et al. indicated that when consumers recognize companies as 2013). Other researchers have argued that CR has an reputable, they indicate a higher level of loyalty, com- indirect effect on customer loyalty (e.g., Walsh and Wied- panies need to monitor CR on a regular basis to make mann 2004). However, we found a direct relationship appropriate adjustments. between CR and customer loyalty. This research will con- The association between consumers and companies tribute to the hospitality literature because we found that is influenced not only by the transparent actions of the respondents perceive that CR has a positive influence on company but also by consumers’ personal approxima- overall customer loyalty toward a particular hotel. tions of how the company reacts in circumstances in While CSR initiatives have been shown to produce which its activities cannot be transparent (Kitchin 2003). positive attitudes about a company, these attitudes may Therefore, it is generally predicted by CSR advocates not translate into increased customer loyalty because that socially responsible business entities should imple- consumers are unwilling to trade CSR for core attrib- ment meaningful social and environmental initiatives utes (Ailawadi et al. 2014). Most studies have found that and follow the values of transparency via public report- CSR significantly influences CR; however, we argue that ing of these initiatives and their efficiency (Sutantoputra CSR and CR are independent variables. In other words, 2009). Consumers who care about such transparency had companies focus on CSR and CR simultaneously. This more positive responses about socially responsible prod- research will also add to the hotel CSR literature as a uct claims, compared to non-transparent ads (Yan et al. theoretical framework for assimilating these vital con- 2012). To retain customer loyalty, hotel companies must structs. In particular, transparency has not been applied share their socially responsible practices through public and tested in the hotel context. marketing messages. For instance, guides for sharing CSR Finally, while hospitality researchers have described efforts begin with the proposal that business executives gender similarities and differences with regard to con- “be credible, transparent, honest” about their companies’ sumption behaviors and perceptions, we found a actions (Middlemiss 2003). Kim and Kim SpringerPlus (2016) 5:1537 Page 10 of 13

From a demographic standpoint, our findings will help valued company plan that provides sustainable competi- hospitality marketers to effectively target certain seg- tive benefits. ments of the population and provide clearer insights into formulating more effective marketing strategies. Under- Limitations and future research standing how to successfully target individuals—irrespec- Our research has certain limitations which future tive of whether that approach is based on demographic researchers could work to overcome. For example, they characteristics—with appropriate message content is could employ our model with a larger random sample paramount. Thus, to attract/retain more customers, hotel or in other contexts. In addition, the representative- marketers should provide a learning opportunity to this ness of the samples collected from Amazon Mechani- group of customers by delivering various information/ cal Turk is debatable (Paolacci and Chandler 2014; knowledge about their programs/activities/services. Paolacci et al. 2010). Follow-up studies could transfer A loyalty program that benefits a charity can be a our model to various other service industries or other notable differentiator for an industry and produce con- sectors of the hospitality industry. Future researchers siderable public relations benefits and opportunities for might wish to replicate our research in other cultural favorable publicity. These can be critical assets in today’s contexts. The data for our research were collected using environment in which CSR activities are gaining more an online survey; however, future investigators should attention from customers. Since the business environ- include a field survey to guarantee the practical appli- ment has become increasingly competitive, maintaining cations of the data. For our study, we relied solely on loyal customer relationships remains an essential ele- self-reports; however, future researchers could employ ment of business strategies. Thus, a loyalty program that a qualitative methodology to authenticate the model can help a company distinguish itself, increase customer for a wider variety of participants and further test the spending, and transmit a positive CSR message is essen- model in these contexts. Longitudinal designs could be tial to success (Eason et al. 2015). Such programs can employed in the future to examine relationships over help a company differentiate itself from others beyond an extended timeframe, while our participants were the price of its products by providing customers with the surveyed only at a single point in time. Follow-up stud- opportunity to donate earned rewards to various charita- ies should include moderating and mediating effects ble organizations. Not only will corporate social respon- within this context. It would be interesting to meas- sibility loyalty programs advance a company’s reputation ure the connection between other socio-demographic and distinguish it from competitors, they will be enjoyed characteristics and participants’ perceptions of CSR. by customers. Finally, because consumers are one of the Scholars could employ additional antecedents and con- most significant groups and are sensitive to sequences (e.g., actual behavior) to further develop the a company’s CSR activities (Bhattacharya and Sen 2003), CSR literature and provide companies with competitive an understanding of stakeholder advantage is critical strategies. Because high-correlations among some of (Bhattacharya et al. 2009) to better comprehension of the the independent constructs have shown (>.7), the esti- outcomes of CSR activities. Because this research investi- mations were not free of significant multicollinearity gated consumer responses, it will help hospitality manag- bias completely. ers understand potential or existing customers. In conclusion, corporate social responsibility enhances Conclusion customer loyalty because consumers typically have This research contends that corporate ability and reputa- positive responses toward companies that are socially tion, perceived corporate social responsibility, and CSR- accountable (Pomering and Dolnicar 2006); however, related transparency should be concurrently applied by other scholars have found a distinct lack of consumer hotel executives to develop an effective and valued com- interested in CSR involvement (Vaaland et al. 2008). pany plan that provides sustainable competitive benefits. Despite its positive impacts, CSR activities may also inspire negative reactions. Yoon et al. (2006) discussed Authors’ contributions a backfire effect that results in an undesirable image and Researchers at SBK and DYK developed the framework for examining anteced‑ ents of customer loyalty. SBK investigators were also involved in the analysis customers rejecting the company. Even if a company is and the interpretation of the results of this empirical study. All authors read associated with socially responsible agencies, it does not and approved the final manuscript. necessarily mean that a company is viewed as socially Author details responsible (Mohr et al. 2001). We contend that CA, CR, 1 College of Business Administration, Inha University, 421B Building 6, Incheon, CSR-related transparency, and CSR may be concurrently South Korea. 2 Hospitality Management, University of Missouri, 115 Eckles Hall, applied by hotel managers to develop an effective and Columbia, MO 65211, USA. Kim and Kim SpringerPlus (2016) 5:1537 Page 11 of 13

Competing interests Received: 18 May 2016 Accepted: 5 September 2016 The authors declare that they have no competing interests.

Funding The Inha University for the financial support to conduct this study.

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